“Regulation of Cross-border-Establishment in China and the EU: A comparative Law and Economics Approach”

Key words: China, expanding (international) companies, licensing barriers, legislation

Companies in China, including the branches of international companies, which want to expand across provincial borders, may encounter licensing barriers to market entry that have been erected by local authorities. A significant incentive for local officials to make more stringent licensing requirements for inter-provincial establishment seems that they want to seek promotion. This thesis studies how to facilitate inter-provincial establishment from an institutional perspective. Without strong administrative capacities and independent courts, national legislators should precisely and clearly prescribe which authorities are empowered to control inter-provincial establishment, and under what conditions.